John C. Bogle: How to Invest in the Stock Market & Mutual Funds (2001)

John Clifton "Jack" Bogle is the founder and retired CEO of The Vanguard Group. He is known for his 1999 book Common Sense on Mutual Funds: New Imperatives for the Intelligent Investor, which became a bestseller and is considered a classic within the investment community. Bogle was born in Montclair, New Jersey. His family was affected by the Great Depression. He attended Blair Academy on a full scholarship, earned his undergraduate degree from Princeton University in 1951, and attended evening and weekend classes at the University of Pennsylvania. Upon graduation he went to work for Walter L. Morgan at Wellington Management Company.[3] After successfully climbing through the ranks, he was named chairman of Wellington but was later fired for an "extremely unwise" merger that he approved, a poor decision that he considers his biggest mistake, stating, "The great thing about that mistake, which was shameful and inexcusable and a reflection of immaturity and confidence beyond what the facts justified, was that I learned a lot."[4] Bogle founded The Vanguard Group in 1974. Under his leadership, the company grew to be the second-largest mutual fund company in the world. Influenced by the works of Eugene Fama, Burton Malkiel, and Paul Samuelson, Bogle founded the Vanguard 500 Index Fund in 1975 as the first index mutual fund available to the general public.[5] He continues to be active in The Vanguard Group. Bogle is a member of the board of trustees at Blair Academy. He is also an advisory board member of the Millstein Center for Corporate Governance and Performance at the Yale School of Management. Bogle received an honorary doctorate from Princeton University in 2005. Bogle also serves on the board of trustees of the National Constitution Center in Philadelphia, a museum dedicated to the U.S. Constitution. He had previously served as chairman of the board from 1999 through 2007. He was named chairman emeritus in January 2007, when former president George H. W. Bush was named chairman. Bogle is famous for his insistence, in numerous media appearances and in writing, on the superiority of index funds over traditional actively managed mutual funds. He contends that it is folly to attempt to pick actively managed mutual funds and expect their performance to beat a low-cost index fund over a long period of time, after accounting for the fees that actively managed funds charge. Bogle argues for an approach to investing defined by simplicity and common sense. Below are his eight basic rules for investors:[6] Select low-cost index funds Consider carefully the added costs of advice Do not overrate past fund performance Use past performance to determine consistency and risk Beware of stars (as in, star mutual fund managers) Beware of asset size Don't own too many funds Buy your fund portfolio - and hold it Books Bogle on Mutual Funds: New Perspectives for the Intelligent Investor (McGraw-Hill, 1993), ISBN 1-55623-860-6 Common Sense on Mutual Funds: New Imperatives for the Intelligent Investor (John Wiley & Sons, 1999), ISBN 0-471-39228-6 John Bogle on Investing: The First 50 Years (McGraw-Hill, 2000), ISBN 0-07-136438-2 Character Counts: The Creation and Building of The Vanguard Group (McGraw-Hill, 2002) ISBN 0-07-139115-0 The Battle for the Soul of Capitalism (Yale University Press, 2005), ISBN 0-300-10990-3 The Little Book of Common Sense Investing: The Only Way to Guarantee Your Fair Share of Stock Market Returns (John Wiley & Sons, 2007), ISBN 978-0-470-10210-7 Enough : True Measures of Money, Business, and Life (John Wiley & Sons, 2008), ISBN 978-0-470-39851-7 Common Sense on Mutual Funds: Fully Updated 10th Anniversary Edition (John Wiley & Sons, 2009), ISBN 0-470-13813-0 Don't Count on it!: Reflections on Investment Illusions, Capitalism, "Mutual" Funds, Indexing, Entrepreneurship, Idealism, and Heroes (John Wiley & Sons, 2010) ISBN 978-0-470-64396-9 The Clash of the Cultures: Investment vs. Speculation (John Wiley & Sons, 2012) ISBN 978-1118122778 http://en.wikipedia.org/wiki/John_C._Bogle

Comments

1. this talk is so complex. and full of so much information its overwhelming. i doubt anyone listening to it live was able to comprehend it fully. awesome
2. Read The little book on common sense investing (2007) by John C.Bogle .
3. great video.